Economics (AS & A Level) · May / June 2021 · Paper 32 · Question 13

In various countries, the supply of public utilities such as water and electricity have been licensed by the government to a few private firms. What should governments do to persuade these profit-seeking private firms not to overcharge consumers?

1. Aallow private firms to merge to create a monopoly
2. Bappoint a regulatory body to guarantee supplies at all times
3. Cderegulate nationalised industries to create a free market
4. Denable customers to switch easily from one private firm to another

As printed in the paper